Glossary
PEP (Politically exposed person)
A politically exposed person holds or has held a prominent public function, such as a head of state, minister, senior judge, senior military officer or executive of a state-owned company. Family members and close associates are usually treated the same way. PEP status is not an accusation; it signals a higher risk of corruption-related funds.
Why it matters for brokers and payment firms
Onboarding a PEP needs senior management approval and enhanced due diligence on source of funds and wealth. Monitoring should look for activity that does not fit the declared sources.